- options for reform 25 th August 2010 RPRC: Susan St John, Michael - - PowerPoint PPT Presentation

Overseas Pensions Forum

• options for reform
• Retirement Policy and Research Centre
• Human Rights Commission, and
• Centre for Accounting, Governance

and Taxation Research present: 25th August 2010

RPRC: Susan St John, Michael Littlewood, Claire Dale www.rprc.auckland.ac.nz

Welcome Tena koutou

Who are we? Research based Policy focussed We believe: Policy should be based on clear principles and be simple and transparent

The Forum’s rules

• Contentious subject
• Chatham House

rules

• Cannot address

individual cases

Firm chair

Your reward....

Please join us later

Human Rights Chief Commissioner Rosslyn Noonan

Setting the scene

Governments’ role in pensions in the 21st century is

COMPLEX

Retirement incomes – the spectrum

• Pure private
• Pure voluntary saving
• Tax-subsidised private saving
• Mandatory private saving
• Mandatory public saving
• Social insurance
• Earmarked taxes
• Tax-funded flat-rate universal pensions
• Tax-funded flat-rate means-tested pensions
• Social assistance
• Pure public

Retirement incomes – the spectrum

• Pure private
• Pure voluntary saving
• Tax-subsidised private saving
• Mandatory private saving
• Mandatory public saving
• Social insurance
• Earmarked taxes
• Tax-funded flat-rate universal pensions
• Tax-funded flat-rate means-tested pensions
• Social assistance
• Pure public

New Zealand Superannuation

– Individual basis – Not tied to work – Flat rate, taxable – Not welfare – Low residency requirements

Simple and effective: Deprivation rates (MSD 2009)

10 20 30 40 50 60

LU NO NL SE NZ DK IE IS UK DE FI FR AT BE ES IT CZ SI EE PT GR HU LT PL SK CY LV

Proportion with 3+ enforecd lacks (%) NZ

New Zealand and Australia unique

• Need for section 70

An Australian might have no Age Pension but have highly subsidised mandatory saving For which section 70 does not apply

Add KiwiSaver to the mix

• Pure private
• Pure voluntary saving
• Tax-subsidised private saving
• Mandatory private saving
• Mandatory public saving
• Social insurance
• Earmarked taxes
• Tax-funded flat-rate universal pensions
• Tax-funded flat-rate means-tested pensions
• Social assistance
• Pure public

Maze of issues and complaints

• Ruth is at one end
• The odd person thinking they should get

2 full basic pensions is at the other

Outcomes of this forum

• Not all expectations will met
• The RPRC, the HRC and the CAGTR are

not the government

• Hopefully this forum will make a

significant contribution to change

Understanding the DDP

Introducing Dianne Rogers and Lynn Cousins